Buncombe County finances improve, stronger tax revenue boosts year-end outlook
Stronger property and sales tax collections could return up to $13.9 million to Buncombe County’s reserves, easing pressure on schools, staffing and storm recovery.
Stronger property and sales tax collections are giving Buncombe County a year-end lift that could add as much as $13.9 million back into reserves instead of draining savings.
County commissioners reviewed the updated numbers during their final scheduled budget workshop, where staff said the fiscal year was closing in better shape than expected. The county’s FY2026 budget totals about $438.1 million in spending against $437.5 million in expected revenue, but the latest projections show the government could still end the year with a net gain to fund balance of between $10.4 million and $13.9 million.
Most of that improvement came from tax revenue. Staff said Buncombe was running about $4.5 million ahead in property tax collections and about $2.5 million ahead in sales tax revenue compared with the original budget. That matters in a county where even modest shifts in collections can affect how much room commissioners have for school funding, emergency services, public health, road work and social programs.
The picture was not all upside. Some revenues still lagged, including certain reimbursements, ambulance billing tied to Medicaid changes and jail-related revenue. County staff said departments were projected to use about 98% of their budgets, suggesting operations were tracking close to plan even as some income lines remained under pressure.
The stronger finish follows a difficult budget year. Buncombe County adopted its FY2025-26 budget on June 3, 2025, with a general fund of $433.1 million and a property-tax rate of 54.66 cents per $100 of assessed value, up 2.9 cents from the prior year. Budget documents estimated $52.9 billion in taxable property value, and the county set aside $121.8 million for education.
County budget materials had already described the FY2026 environment as one shaped by post-Helene losses, including $11.4 million in revenue reductions. The county’s stated goal was to restore the general fund above its minimum unassigned fund balance of 15% of expenditures, so any year-end improvement gives commissioners more flexibility heading into the next budget cycle.
That breathing room still looks limited. Later budget officials said the unaudited final-year fund balance stood at 14.6%, below the county’s 15% policy target. Even with a stronger finish, Buncombe’s finances remain tight, and the extra revenue is more likely to cushion reserves than to open the door to broad new spending.
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